TechFlow news — On August 8, according to The Block, JPMorgan analysts said that despite recent market volatility, institutional investors have shown limited or no de-risking in bitcoin futures, supporting the rebound in bitcoin's price. On Monday, the cryptocurrency market experienced its sharpest correction since the FTX crisis, with bitcoin briefly falling over 15% before recovering. JPMorgan's analysis indicates this rebound was primarily driven by institutional investors who did not significantly reduce their bitcoin futures positions during the turmoil.
JPMorgan’s futures positioning indicator shows that the rising open interest in CME bitcoin futures contracts, along with a positively sloped futures curve, reflect bullish sentiment among these investors. Growing premiums of bitcoin futures over spot prices indicate confidence among futures traders. Analysts cite several reasons for institutional optimism: Morgan Stanley recently allowed its wealth advisors to recommend spot bitcoin ETFs to certain clients; major liquidations in the Mt. Gox and Genesis bankruptcy cases are nearing completion; and cash distributions from the FTX bankruptcy later this year could boost market demand. Additionally, both major U.S. political parties are supporting crypto-friendly regulations. However, analysts note that most of these positive factors have likely already been priced into the market.
